Operations

Wholesale Luxury SUV and Crossover Values Fall

August 25, 2017
• by Staff

After a week where the wholesale vehicle market experienced broad declines among most vehicle segments, wholesale values remained relatively stable this week, according to Black Book’s August 22 Market Insights report.

A few vehicles in the truck segment, however, saw even steeper declines this week.

Overall volume-weighted truck segment values were down 0.39% last week, compared to 0.40% the prior week. However, subcompact luxury crossovers, compact luxury crossover/SUVs, and mid-size luxury crossover/SUVs were down 0.70%, 0.70%, and 0.73%, respectively. These declines were the highest within the truck segment.

“Retention rates of compact luxury crossover/SUVs have held well in comparison to other vehicle segments. However, 2014 model-year vehicles in 2017 are tracking lower than 2013 model-year vehicle s one year ago,” the report stated.

The segment to see the least change in depreciation this week was the compact van segment, remaining completely flat from the previous week. The stability that compact vans saw this week was a reversal from the previous week, when the segment posted the highest depreciation among all vehicles tracked.

“Dealers continue to remain interested in clean units from auctions to make up for lower number of good trade-in vehicles,” said Anil Goyal, senior vice president of automotive valuation and analytics.

Operations

An increasing number of flood-damaged vehicles are returning to the used market across the country, and increasingly in states where flooding might not be top of mind, according to new data from Carfax.

To increase dealer confidence in purchasing decisions within the wholesale used-vehicle marketplace, Manheim is introducing flat-rate pricing for automatic post-sale inspections, providing dealers a hassle-free way to reduce their risks and help ensure vehicles bought at auction are in the expected condition.